Session of 2023
Senate Substitute for HOUSE BILL No. 2302
By Committee on Agriculture and Natural Resources
3-23
AN ACT concerning water; relating to funding for the state water plan and
water infrastructure projects; making and concerning appropriations for
the fiscal year ending June 30, 2023, and June 30, 2024, for the state
treasurer; providing for a transfer of moneys from the state general
fund to the state water plan fund; creating the water technical assistance
fund and water projects grant fund; authorizing the Kansas water office
to provide grants from such funds and adopt rules and regulations to
establish the criteria for grants from such funds; amending K.S.A. 82a-
951 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
New Section 1.
STATE TREASURER
(a) There is appropriated for the above agency from the state general
fund for the fiscal year ending June 30, 2023, the following:
Water supply storage debt payment for
Milford and Perry reservoirs.................................................$52,000,000
Provided, That notwithstanding the provisions of article 42 of chapter 75
of the Kansas Statutes Annotated, and amendments thereto, or any other
statute, the state treasurer shall invest all moneys in the water supply
storage debt payment for Milford and Perry reservoirs account in United
States treasury bills until the interest rate for such treasury bills is equal to
or less than the interest rate for water supply storage debt payments as
determined by the state treasurer: Provided further, That upon
determination of the state treasurer that the United States treasury bill rate
is equal to or less than the interest rate on such storage debt, expenditures
shall be made by the above agency from the water supply storage debt
payment for Milford and Perry reservoirs account during fiscal year 2023
for the payment of water supply storage debt for Milford and Perry
reservoirs: Provided, however, That if, during the fiscal year ending June
30, 2023, the director of the Kansas water office certifies to the state
treasurer and the governor that there is a need for the Kansas water office
to call the water supply storage into service, the state finance council shall
authorize the state treasurer to immediately make expenditures from the
water supply storage debt payment for Milford and Perry reservoirs
account for the payment of water supply storage debt for Milford and
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Perry reservoirs: And provided further, That such state finance council
action on this matter is hereby characterized as a matter of legislative
delegation and subject to the guidelines prescribed in K.S.A. 75-3711c(c),
and amendments thereto, except that such authorization also may be given
while the legislature is in session: And provided further, That at the same
time such certification is transmitted to the state treasurer and the
governor, the director of the Kansas water office shall transmit a copy of
such certification to the director of the budget and the director of
legislative research.
New Sec. 2.
STATE TREASURER
(a) Any unencumbered balance in the water supply storage debt
payment for Milford and Perry reservoirs account in excess of $100 as of
June 30, 2023, is hereby reappropriated for fiscal year 2024: Provided,
That notwithstanding the provisions of article 42 of chapter 75 of the
Kansas Statutes Annotated, and amendments thereto, or any other statute,
the state treasurer shall invest all moneys in the water supply storage debt
payment for Milford and Perry reservoirs account in United States treasury
bills until the interest rate for such treasury bills is equal to or less than the
interest rate for water supply storage debt payments as determined by the
state treasurer: Provided further, That upon determination of the state
treasurer that the United States treasury bill rate is equal to or less than the
interest rate on such storage debt, expenditures shall be made by the above
agency from the water supply storage debt payment for Milford and Perry
reservoirs account during fiscal year 2024 for the payment of water supply
storage debt for Milford and Perry reservoirs: Provided, however, That if,
during the fiscal year ending June 30, 2024, the director of the Kansas
water office certifies to the state treasurer and the governor that there is a
need for the Kansas water office to call the water supply storage into
service, the state finance council shall authorize the state treasurer to
immediately make expenditures from the water supply storage debt
payment for Milford and Perry reservoirs account for the payment of water
supply storage debt for Milford and Perry reservoirs: And provided further,
That such state finance council action on this matter is hereby
characterized as a matter of legislative delegation and subject to the
guidelines prescribed in K.S.A. 75-3711c(c), and amendments thereto,
except that such authorization also may be given while the legislature is in
session: And provided further, That at the same time such certification is
transmitted to the state treasurer and the governor, the director of the
Kansas water office shall transmit a copy of such certification to the
director of the budget and the director of legislative research.
New Sec. 3. (a) On July 1, 2023, the director of accounts and reports
shall transfer $35,000,000 from the state general fund to the state water
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plan fund. It is the intent of the legislature to provide for the transfer of
$35,000,000 from the state general fund to the state water plan fund on
July 1, 2024, July 1, 2025, July 1, 2026, and July 1, 2027.
(b) (1) The state water plan fund shall continue to be appropriated and
expended for the purposes prescribed in K.S.A. 82a-951, and amendments
thereto, except that:
(A) If an appropriation is made for any fiscal year as intended in
subsection (a), on July 1 of such fiscal year, or as soon thereafter on such
dates as moneys are available:
(i) $5,000,000 shall be transferred from the state water plan fund to
the water technical assistance fund established in section 4, and
amendments thereto; and
(ii) $15,000,000 shall be transferred from the state water plan fund to
the water projects grant fund established in section 5, and amendments
thereto; and
(B) for fiscal year 2024 through fiscal year 2028, priority for use of
funds collected pursuant to K.S.A. 82a-954(a)(3), and amendments
thereto, and remitted to the state water plan fund pursuant to K.S.A. 82a-
951, and amendments thereto, shall be for stockwatering conservation
projects. The type and scope of such stockwatering conservation projects
shall be identified by the Kansas water office in the formulation of the
state water plan pursuant to K.S.A. 82a-903, and amendments thereto.
(2) The provisions of this section shall expire on July 1, 2028. On
July 1, 2028, the director of accounts and reports shall transfer all moneys
in the water technical assistance fund and the water projects grant fund to
the state water plan fund and all liabilities of the water technical assistance
fund and the water projects grant fund shall be imposed upon the state
water plan fund. On July 1, 2028, the water technical assistance fund and
the water projects grant fund shall be abolished.
(c) (1) (A) Notwithstanding any restrictions in K.S.A. 82a-951, and
amendments thereto, the Kansas water authority may recommend to the
legislature the appropriation of up to 10% of the unencumbered balance of
the state water plan fund to be used to supplement salaries of existing state
agency full-time equivalent employees and for funding new full-time
equivalent positions created to implement the state water plan. Moneys
from such appropriation may be used to supplement existing positions, but
such moneys shall not be used to replace state general fund moneys, any
fee fund moneys or other funding for positions existing on July 1, 2023.
(B) Eligible full-time equivalent positions that moneys may be used
for pursuant to this paragraph include engineers, geologists, hydrologists,
environmental scientists, attorneys, resource planners, grant specialists and
any other similar positions.
(2) If at least two conservation districts present a joint proposal to the
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Kansas water authority for a position or positions to provide shared
services to all districts involved in such proposal, the Kansas water
authority may recommend that moneys be used to supplement the salary or
salaries of such position or positions pursuant to paragraph (1).
(3) The Kansas water authority shall encourage funding requests from
state and local entities that cooperate with qualified nonprofit entities on
projects that provide a direct benefit to water quantity and quality,
including water infrastructures that are both natural and constructed, and
include matching funds from non-state sources.
(d) All reporting requirements established in K.S.A. 82a-951, and
amendments thereto, shall continue and such reporting requirements shall
apply to the water technical assistance fund established in section 4, and
amendments thereto, and the water projects grant fund established in
section 5, and amendments thereto.
New Sec. 4. (a) (1) There is hereby established in the state treasury
the water technical assistance fund. The fund shall be administered by the
Kansas water office. Expenditures from such fund shall be used for the
purposes described in subsection (b). All expenditures shall be made in
accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the director
of the Kansas water office, or such director's designee.
(2) Whenever the unencumbered balance of the water technical
assistance fund exceeds $15,000,000, the director of the Kansas water
office shall certify such excess amount to the director of accounts and
reports. Upon receipt of such certification, the director of accounts and
reports shall transfer the certified excess amount from the water technical
assistance fund to the state general fund.
(b) (1) The water technical assistance fund shall be used by the
Kansas water office to provide grants for the planning, engineering,
managing and other technical assistance that may be necessary in the
development of plans for water infrastructure projects or for processing the
grant and loan applications for such water infrastructure projects. The
Kansas water office may offer services directly, provide funding to other
organizations to provide such services at no cost to a municipality,
unincorporated area with a national park site or state historic site or special
district related to water or the Kansas water office may provide grants
directly to applicants to cover expenses related to the hiring of such
technical assistance.
(2) Any municipality, unincorporated area with a national park site or
state historic site or special district related to water organized under the
laws of the state of Kansas may apply for a grant, and the Kansas water
office is authorized to award full or partial grants to such applicants.
Municipalities and unincorporated areas with fewer than 2,000 residents
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shall be prioritized for the awarding of full grants. Watershed districts,
conservation districts, groundwater management districts and all special
districts related to water shall not be prioritized for the awarding of full
grants for the purposes of this section.
(c) The Kansas water office shall adopt rules and regulations to
establish any necessary criteria for administering the water technical
assistance fund and awarding grants for technical assistance. Such criteria
shall include, but not be limited to, factors applicable to:
(1) Municipalities and unincorporated areas of different populations
including the prioritization of small municipalities and unincorporated
areas as required by subsection (b)(2). Such factors may include, but not
be limited to, public health, socio-economic factors and the ability for a
municipality or unincorporated area to repay any loans without grant
assistance; and
(2) special districts such as watershed districts, conservation districts,
groundwater management districts, rural water districts and any other
similar districts formed for a special or single purpose related to water.
(d) No single grant awarded for technical assistance pursuant to this
section shall exceed $1,000,000 unless specified by any appropriation act
of the Kansas legislature.
New Sec. 5. (a) (1) There is hereby established in the state treasury
the water projects grant fund. The fund shall be administered by the
Kansas water office. Expenditures from such fund shall be used for the
purposes described in subsection (b). All expenditures shall be made in
accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the director
of the Kansas water office, or such director's designee.
(2) Whenever the unencumbered balance of the water projects grant
fund exceeds $30,000,000, the director of the Kansas water office shall
certify such excess amount to the director of accounts and reports. Upon
receipt of such certification, the director of accounts and reports shall
transfer the certified excess amount from the water projects grant fund to
the state general fund.
(b) The Kansas water office may provide full or partial funding in the
form of grants to any municipality or special district related to water
established pursuant to the laws of the state of Kansas for the following:
(1) Construction, repair, maintenance or replacement of water-related
infrastructures and any related construction costs;
(2) matching moneys for grant or loan applications for water-related
infrastructure projects; and
(3) grants that may be applied to an outstanding loan balance from the
public water supply loan fund established in K.S.A. 65-163e, and
amendments thereto, or the Kansas pollution control revolving fund
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established in K.S.A. 65-3322, and amendments thereto, subject to the
provisions of subsection (c).
(c) The Kansas water office shall adopt rules and regulations to
establish any necessary criteria for grants from the water projects grant
fund. Such rules and regulations shall include any necessary criteria that
may be applied to the selection of projects with outstanding loan balances
from the public water supply loan fund established in K.S.A. 65-163e, and
amendments thereto, or the Kansas pollution control revolving fund
established in K.S.A. 65-3322, and amendments thereto. Such criteria shall
be based on the following factors:
(1) The planned construction on the project with the outstanding loan
balance is complete;
(2) the municipality or special district has made at least five years of
payments on such project loans;
(3) awarding grants that provide repayment of up to:
(A) 90% of any remaining project loan balance for cities with fewer
than 2,000 residents;
(B) 75% of any remaining project loan balance for cities with fewer
than 5,000 residents;
(C) 50% of any remaining project loan balance for cities with fewer
than 10,000 residents; and
(D) 25% of any remaining project loan balance for all other cities in
Kansas; and
(4) any other relevant criteria including, but not limited to, the socio-
economic status of the residents of any municipality, public health and the
ability of any municipality to repay a loan without further assistance.
(d) No single grant awarded for a project pursuant to this section shall
be greater than $8,000,000 unless specified by any appropriation act of the
Kansas legislature.
(e) The Kansas water office and the department of health and
environment shall coordinate the sharing of information regarding
applicants for loans from the public water supply loan fund established in
K.S.A. 65-163e, and amendments thereto, and the Kansas pollution control
revolving fund established in K.S.A. 65-3322, and amendments thereto,
and shall take into consideration the approval or likely approval of a grant
by the Kansas water office when considering the eligibility of any
municipality to receive moneys from such funds.
Sec. 6. K.S.A. 82a-951 is hereby amended to read as follows: 82a-
951. (a) On and after July 1, 1989, There is hereby created, in the state
treasury, the state water plan fund. All moneys in the state water plan fund
shall be expended in accordance with appropriations acts for
implementation of the state water plan formulated pursuant to K.S.A. 82a-
903 et seq., and amendments thereto. Except as provided in section 3, and
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amendments thereto, such moneys shall be used only for the establishment
and implementation of water-related projects or programs, and related
technical assistance, and shall not be used for: (1) Replacing full time
equivalent positions of any state agency; or (2) recreational projects which
do not meet one or more of the long-range goals, objectives and
considerations set forth in the state water resource planning act.
(b) On or before December 1 of each year, the Kansas water authority
shall submit to the governor and the legislature a report setting out: (1) An
account of all moneys expended from the state water plan fund, the water
technical assistance fund and the water projects grant fund during each
such fiscal year; and (2) a five-year capital development plan for state
water plan projects.
Sec. 7. K.S.A. 82a-951 is hereby repealed.
Sec. 8. This act shall take effect and be in force from and after its
publication in the Kansas register.
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